Biotech Startups
on the Rise

Biotech Startups on the Rise

These are exciting times for biotech startups. U.S. biotechs have secured over $19.5 billion in venture capital until September 30 this year. 

By the looks of it, 2020 will bring something good: if this rate of investments continues, 2020 is probably going to beat 2018’s venture funding by 15% when it comes to biotechnology startups.

According to Bay Bridge Bio, global venture investment in biotech startups in 2018, was $17 billion. $5 billion was for Series A funding, while the rest of $12 billion was equally shared between Series B, Series C, and other investments.

2019 saw a decline in venture investments when it comes to biotechnology startups. $14 billion was invested, and the biggest decline was noted in Series C, which came up at just $1 billion. 

Surprisingly, biotechs are having a comeback this year. Until September 18 they managed to clock in $15 billion in investments. Series B is leading with currently secured $5 billion.

These startups are especially interesting to venture capitals since they are tackling important medical researches and finding cures for yet untreatable diseases. In case of success, these startups will be extremely lucrative investments.

On the Road of Oncology Revolution

One of the most exciting biotech startups is definitely Nuvation Bio. They recently merged with a special purpose acquisition company (SPAC), Panacea Acquisition Corp. Their business combination agreement is expected to reach over $850 million in cash resources. This amount will be used to support Nuvation Bio’s pipeline of oncology programs and for the development of selected drug candidates.

Nuvation Bio is a biopharmaceutical company focused on developing specialized therapies in oncology. Founded in 2018 by David Hung, M.D., Nuvation Bio has been working so far on seven novel oncology programs and each has multiple drug development candidates.

Nuvation Bio is on the road to unveiling a new generation of medicine and drastic improvements in treatment, which would reduce side effects for oncology patients.

Biotech Answering to Current Needs: Early Covid-19 Detection

A young startup Enviral Tech, founded back in March 2020, succeeded in conducting and processing 20,000 coronavirus surface tests since then.

Naturally, they made headlines for their early detection of Covid-19 and they also managed to secure $1.5 million seed funding. This biotechnology company is planning to make more testing available, especially for care facilities and schools. 

Besides surface testing for Covid-19, Enviral Tech is planning to improve its air testing kits as well.

Their investors are Oregon technology and healthcare venture capital fund, Rogue Venture Partners, Cascade Seed Fund, and other private venture capital companies.

Further Breakthroughs in Oncology Therapy

Another startup founded in 2020, Scorpion Therapeutics, closed their funding of $108 million in Series A. Companies that have participated in this investing round are Atlas Venture, Omega Funds, Vida Ventures, alongside Abingworth and Partners HealthCare Innovation.

Scorpion Therapeutics will work on their Precision Oncology 2.0. project, which involves small molecule drugs that will provide relief to people battling cancer. These drugs are planned to spare the healthy tissue and minimize side effects.

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